Check cashing system

ABSTRACT

A customer interface system for use with a check processing system. The customer interface system has a check reader and a card issuing machine. The check reader receives a check code indicative of a check having value and transmits the check code to the check processing system for at least one of authorizing and guaranteeing payment of at least a portion of the value of the check. The card issuing machine is operatively associated with the check reader. The card issuing machine receives an authorization code representing at least one of the authorization and the guarantee from the check processing system and provides an outputted card having a value thereon.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present patent application is a continuation of U.S. Ser. No.10/197,957, filed on Jul. 17, 2002, which claims priority to theprovisional patent application identified by U.S. Ser. No. 60/383,221,filed May 23, 2002, entitled “CHECK CASHING SYSTEM”, the entire contentof both applications is hereby expressly incorporated herein byreference.

STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT

Not applicable.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates generally to a check cashing system, andmore particularly, but not by way of limitation, to an improved processfor cashing checks and distributing cards having a value thereon.

2. Brief Description of Related Art

Check cashing stores are well known places for providing check cashingservices to people, even though they do not have money deposited in theplace where the check is presented. A check cashing store is typically astand-alone location manned by a store clerk. A customer presents thecheck to the store clerk along with a valid identification, such as adriver's license. The store clerk then runs the check through a checkreader. The check reader reads a check code and transmits the code to acheck processing system, such as Global Payments, Inc. The checkprocessing system determines if the check is valid and authentic andthen submits an authorization code back to the check reader so that thestore clerk can give the customer cash for the check. A high risk ofcrime occurs in this type of system due to the high rate of cash flowand the large amounts of cash needed for such transactions.

Another type of check cashing system utilizes an automated tellermachine (“ATM”) associated with a bank. However, in this system, checksare only cashed for persons having funds deposited at that institution.In addition, an identification card having a secret code is utilizedduring the transaction.

Recently, a check reader has been interfaced with an ATM to provide acheck cashing system not requiring a clerk. However, one drawback tothis system is the persistent problem of the ATM running out of cash.This requires that the company servicing the ATM continually supply theATM with enough cash to keep the ATM functioning.

To this end, a need exists for a check cashing system that will providea process of cashing a check so as to reduce the risk of crime and thelarge supplies of needed cash. It is to such a check cashing system thatthe present invention is directed.

BRIEF DESCRIPTION OF A VIEW OF THE DRAWING

FIG. 1 is a diagrammatic representation of a check cashing system of thepresent invention.

FIG. 2 is a diagrammatic representation of a check reader of FIG. 1.

FIG. 3 is a diagrammatic representation of a card issuing machine ofFIG. 1.

DETAILED DESCRIPTION OF THE INVENTION

Referring now to FIG. 1, a check cashing system 10 is shown inaccordance with the present invention. The check cashing system 10includes a customer interface system 12 having one or more check readers14 and one or more card issuing machines 16. The check cashing system 10further includes one or more check processing systems 18. Only one ofthe check readers 14, card issuing machines 16, and check processingsystems 18 are shown in FIG. 1 for purposes of clarity. It is envisionedthat more than one check reader 14 and more than one card issuingmachine 16 will communicate with one check processing system 18.

The check reader 12, the card issuing machine 16, and the checkprocessing system 18 are individually well-known in the art. Thus, nofurther description of their components or construction is believednecessary in order for one skilled in the art to understand andimplement the check cashing system 10 of the present invention. However,it is believed that the particular combination of the check cashingsystem 10, including the check reader 14, the card issuing machine 16,and the check processing system 18 is novel, as well as the followinguses of the check reader 14, the card issuing machine 16, and the checkprocessing system 18. Further, it should be understood that a pluralityof check readers 14 and card issuing machines 16 may be used with thecheck processing system 18.

The check cashing system 10 may be utilized at a point of sale, however,it should be understood that the check cashing system 10 may be utilizedin various ways in accordance with the present invention. For example,the check cashing system 10 may be utilized at a check cashing store.

As shown in FIG. 2, each of the check readers 14 has an input device 20and an output device 22. The input device 20 is capable of reading acheck code provided on the check having a value and the output device 22receives and transmits the check code. The input device 20 usuallyprovides a slot for inserting the check which allows the check code tobe read magnetically. However, any suitable input device capable ofreading a check code can be used.

One example of a check reader is the CHEQ'R™ check reader by Stone West,Inc. Other check readers have been combined with printers so as to printout an authorization slip. EZCheck offers a system that includes theEC5000i Imager check reader and the Talento Terminal; the TalentoTerminal with built in printer and Mag-Tek check reader; and theScribe-612 printer and IVI-3000 check reader. The check readers 14 arecapable of receiving a variety of reprinted checks, such as third-partygovernment or payroll checks, checks payable by insurance companies, orchecks payable to independent contractors, governments or governmentalagencies. These third-party instruments are capable of being negotiatedand transferred.

The check readers 14 are preferably provided at remote locations suchthat the check readers 14 are convenient for customers. For example, thecheck readers 14 can be provided at a variety of different locations,such as retail stores, banks, kiosks or the like.

Referring now to FIG. 3, the card issuing machines 16 are capable ofreceiving an authorization code and dispensing or providing an outputtedcard having a value thereon for purchasing goods or services. The cardissuing machines 16 have an input device 24 in communication with atleast one of the check readers 14 and the check processing system 18.The authorization codes can be input into the card issuing machines 16either manually or electronically. That is, the authorization codes canbe provided to a clerk or a customer and the clerk or the customer canenter the authorization code into the card issuing machines 16 via anysuitable input device 24, such as a keyboard, keypad, microphone, videowand, or a mouse. Alternatively, the authorization code can be providedto the card issuing machine 16 in electronic form. In this instance, theinput device 24 would typically be an electronic communication device,such as a modem, radio-frequency communication unit of the like.

The card issuing machines 16 are preferably provided at remote locationssuch that the card issuing machines 16 are convenient for customers. Inone embodiment, at least one check reader 14 and at least one cardissuing machine 16 are provided in a same location so that a customercan in effect cash a check by processing the check through the checkreader 14 and receiving the outputted card from the card issuing machine16. The outputted card can also be authorized by swiping the outputtedcard through a magnetic-strip card reader, such as TRANS 380 andTRANS330 developed by VeriFone®. Alternatively, the check reader 14 andthe card issuing machine 16 can be provided at separate locations.

In use, a customer presents a check to a clerk who runs the checkthrough the check reader 14. The check reader 14, which is operativelyassociated with the check processing system 18, receives the check codeindicative of a check having a value and transmits the check code to thecheck processing system 18 via a signal path 20. The check processingsystem 18 determines if the check is valid by identifying the check codeand then generating an authorization code for at least one ofauthorizing and guaranteeing payment of at least a portion of the valueof the check. The authorization code is transmitted back to the checkreader 14 via the signal path 25.

The check reader 14 receives the authorization code and outputs theauthorization code in a format perceivable by an individual. Once theclerk has received the authorization code, representing the guarantee orauthorization from the check processing system 18, the clerk enters theauthorization code into the card issuing machine 16, which is inoperatively associated with the card issuing machine 16 via a signalpath 26. For the clerk to enter the authorization code into the cardissuing machine 16, the card issuing machine 16 is typically present atthe same location as that of the card reader 14. The card issuingmachine 16 is capable of issuing transaction cards having a valuethereon, such as credit cards and debit cards, among others.

The input device 24 of the card issuing machine 16 receives theauthorization code. With the receipt of the authorization code, the cardissuing machine 16 programs, activates, and or otherwise loads anoutputted card with an output device 28. The authorization code does nothave to necessarily have to be loaded from the check processing system18, but may be loaded from a third-party database. Loading data from athird-party database is well-known in the art thus, no furtherdescription of components or construction is believed necessary in orderfor one skilled in the art to understand and implement the loading ofthe outputted card with the authorization code. It should be understoodthat in accordance with the present invention at least some of the moneyfrom the check goes on the outputted card, however, the entire amount ofthe check is not required to be present on the outputted card. Theoutputted card can be one physical card or multiple physical cards. Incertain instances, the customer can select the amount of money to beprovided on the outputted card. In these instances, the clerk or thecustomer would typically enter an amount into the check reader 14 or thecard issuing machine 16.

In one embodiment, the check processing system 18 submits theauthorization code directly to the card issuing machine 16, via a signalpath 30. The signal paths 25, 26, and 30 can be airway or cablecommunication links. In another embodiment, the card reader 14 and thecard issuing machine 16 do not have to be present at the same location.That is, upon receipt of the authorization code from the checkprocessing system 18 as discussed above, the clerk presents the customerwith the authorization code which the customer then takes to any one ofthe card issuing machines 16 and acquires the outputted card from theoutput device 28 of the card issuing machine 16 by entering theauthorization code into the input device 24 of the card issuing machine16 adapted for manual entry of the authorization code.

The check cashing system 10 can be used to transfer or send money toother people. For example, assume a customer wanted to send money to athird party. The customer can run a check through the check reader 14,which sends the signals to the check processing system 18 to obtain theauthorization code. Once the customer receives the authorization code,the customer can communicate the authorization code to the third partyvia regular mail, e-mail or telephone, for example. The third party canthen input the authorization code into one of the card issuing machines16 to obtain the outputted card.

The following examples of the operation of the check cashing system 10are set forth hereinafter. It is to be understood that the examples arefor illustrative purposes only and are not to be construed as limitingthe scope of the invention as described.

EXAMPLE 1

The check reader 14 can be positioned at a point-of-sale terminalprovided at a retail location, such as a convenience store or a grocerystore. The check processing system 18 can be a web-site on the Internetor a database server having computer hardware located at or remote fromthe retail location. A customer brings a check written for $100 to thepoint-of-sale terminal provided at the retail location. A check cashingsignal, including the check code, is transmitted to the check processingsystem 18 via a local area network. The check processing system 18validates and records the cashing of the $100 check and assigns a uniqueauthorization code to identify the cashing of the $100 check. Theauthorization code is transmitted from the web-site to the check reader14 via the signal path 20. The authorization code is transmitted to thepoint-of-sale terminal and printed on a receipt for the customer. Thecustomer travels to any card issuing machine 16 having access to theInternet and enters the authorization code into the card issuing machine16. The card issuing machine 16 transmits the authorization code to thecheck processing system 18 via the signal path 30 and obtainsauthorization to provide the customer with an outputted card having upto $100. An amount charged for a service fee or any other applicablefees, such as that paid to each of the owners of the check reader 14,the card issuing machine 16, or the check processing system 18 will bededucted from the $100. The customer takes the card having the monetaryamount from the card issuing machine 16 and then uses the card topurchase goods or services. The card issuing machine 16 transmits asignal to the check processing system 18 via the signal path 30 toindicate that a card with a $100 minus the applicable fee was given tothe customer.

EXAMPLE 2

A customer brings a check written for $100 to the check reader 14provided at a retail location. The check is read by the check reader 14and a check cashing signal, including the check code, is transmitted tothe check processing system 18 via a local area network. The checkprocessing system 18 validates and records the cashing of the $100 checkand assigns a unique authorization code to identify the cashing of the$100 check. The authorization code is transmitted from the checkprocessing system 18 to the check reader 14 via the signal path 25. Theauthorization code is displayed on the check reader 14 where the clerkreads the authorization code and manually enters the authorization codeinto the card issuing machine 16 for the customer which is in the samelocation as that of the clerk. The card issuing machine 16 transmits theauthorization code to the check processing system 18 via the signal path30 and obtains authorization to provide the customer with the outputtedcard having up to $100. The amount charged for the service fee or anyother applicable fees, such as that paid to each of the owners of thecheck reader 14, the card issuing machine 16, or the check processingsystem 18 will be deducted from the $100. The customer takes the cardhaving the monetary amount from the card issuing machine 16 and thenuses the card to purchase goods or services. The card issuing machine 16transmits a signal to the check processing system 18 via the signal path30 to indicate that a card with a $100 minus the applicable fee wasgiven to the customer.

EXAMPLE 3

A son who lives in New York wishes to send money to his mother living inOklahoma. The son goes to a kiosk and gives a clerk his paycheck. Theclerk then runs the check through a check reader 14 or manually entersthe check's routing code into a keypad provided by the check reader 14.The check code is transmitted via a signal path to the check processingsystem 18 or another third-party database. An authorization code isprovided representing at least one of a guarantee or authorization. Thecheck reader 14, provided with a printer terminal, receives theauthorization code and prints a receipt having the authorization code.The clerk hands the receipt to the son. The son then calls or e-mailshis mother and provides the authorization code to her. The mother goesto a card issuing machine 16 in Oklahoma and manually enters theauthorization code into the input device 24 (keypad) of the card issuingmachine 16, which in this instance is typically connected to part of anetwork associated with the check reader 14 located in New York. Thecard issuing machine 16 communicates with the check processing system 18or other database (or locally validates the authorization code) andvalidates the authorization code. Then, the card issuing machine 16loads an outputted card having a value with the output device 29.

Changes may be made in the construction and the operation of the variouscomponents, elements and assemblies described herein or in the steps orthe sequence of steps of the methods described herein without departingfrom the spirit and scope of the invention as defined in the followingclaims.

1. A customer interface system for use with a check processing system,comprising: a check reader receiving a check code indicative of a thirdparty check having value and transmitting the check code to the checkprocessing system for at least one of authorizing and guaranteeingpayment of at least a portion of the value of the third party check; anda card issuing machine operatively associated with the check reader, thecard issuing machine receiving an authorization code representing atleast one of the authorization and the guarantee from the checkprocessing system and providing a debit card loaded with at least aportion of the predetermined value of the third party check.
 2. Thecustomer interface system of claim 1, wherein the check code istransmitted from the check reader to the check processing system, thecheck processing system identifying the check code and generating theauthorization code which is transmitted to the check reader.
 3. Thecustomer interface system of claim 1 wherein the check reader ispositioned at a point of sale terminal.
 4. The customer interface systemof claim 1 wherein the card issuing machine has an input devicereceiving the authorization code and an output device at least one ofgenerating and outputting the outputted card.
 5. The customer interfacesystem of claim 1 wherein the check reader receives the authorizationcode and outputs the authorization code in a format perceivable by anindividual.
 6. The customer interface system of claim 5 wherein the cardissuing machine has an input device adapted for manual entry of theauthorization code.
 7. The customer interface system of claim 5 whereinthe card issuing machine has an input device in communication with atleast one of the check reader and the check processing system.
 8. Thecustomer interface system of claim 1 wherein the card issuing machineand the check reader are located at a same physical location.
 9. Thecustomer interface system of claim 1 wherein the card issuing machineand the check reader are remotely located.
 10. A check cashing system,comprising: a check reader having an input device and an output device,the input device obtaining a check code from a third party check havinga value, the output device receiving the check code and transmitting thecheck code; a check processing system for guaranteeing payment of atleast a portion of the value of the third party check, the checkprocessing system receiving the check code, determining the validity ofthe third party check, and transmitting an authorization code; and acard issuing machine receiving the authorization code and providing adebit card with at least a portion of the predetermined value of thethird party check.
 11. The check cashing system of claim 10 wherein thecheck code is transmitted from the check reader to the check processingsystem, the check processing system identifying the check code andgenerating the authorization code which is transmitted to the checkreader.
 12. The check cashing system of claim 11 wherein the checkreader is positioned at a point of sale terminal.
 13. The check cashingsystem of claim 10 wherein the authorization code generated by the checkprocessing system is transmitted directly to the card issuing machine.14. A customer interface system for use with a check processing system,comprising: a plurality of check readers, each of the check readersreceiving and transmitting at least one respective check code from thirdparty checks for receiving respective authorization codes; and aplurality of card issuing machines, each of the card issuing machinesreceiving respective authorization codes so as to provide an outputtedcard having a value thereon.
 15. The customer interface system of claim14, wherein at least one of the check readers communicate theauthorization code to at least one of the card issuing machines.
 16. Thecustomer interface system of claim 14 wherein the check processingsystem transmitting the authorization code to each of the plurality ofcard issuing machines.
 17. The customer interface system of claim 14wherein each of the card issuing machines has an output devicegenerating the outputted card having a value thereon.
 18. A method ofusing a check cashing system to distribute a card with at least one of apredetermined value thereon and loadable with a predetermined valuethereon, the method comprising the steps of: receiving a third partycheck via a point of sale terminal from a customer wherein a checkreader obtains a check code from the third party check; transmitting acheck cashing signal including the check code; receiving the checkcashing signal via a check processing system; validating the third partycheck via the check processing system; generating and assigning via thecheck processing system an authorization code to identify the cashing ofthe third party check; and at least one of the steps of loading a debitcard with a portion of the value of the check value and providing thecustomer with a debit card loadable with at least a portion of the valueof the third party check.
 19. The method of claim 18 further comprisingthe step of printing via a printer the authorization code on a receiptfor a customer.